An interesting graphic was recently posted on the issue of how different states approach Taxes and E-Commerce. As stated in the graphic and article, a Supreme Court decision from 1992 (Quill v. North Dakota) declared that if a business has no physical presence in a state, then sales tax needs not be collected in that state. However, places such as New York are passing (and their courts upholding) laws to allow just that to happen. So to our E-Commerce clients - make sure you're charging sales tax on New York orders!
http://www.visualeconomics.com/e-tailers-grapple-with-sales-tax/
Update! Thanks to Kenneth at Bluegrass.net, we've become aware of some recent changes to Kentucky Tax Law. KRS 139 (available to read online) covers everything needed by our non-Kentucky e-commerce clients in regards to tax. This update shouldn't affect how our Kentucky clients conduct their online business at present time.
Tags: e-commerce, law, legal, online commerce, sales, sales tax, supreme court, web
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Guys, just to update you on this, KY recently passed ammendments to KRS 139 to include sales tax requirements for those out-of-state retailers selling to KY residents. So make sure you out-of-state clients are charging KY sales tax and filing appropriately.
I've been included in taxes for longer then I care to acknowledge, both on the individualized side (all my working life!!) and from a legal stand since passing the bar and following up on tax law. I've provided a lot of advice and redressed a lot of wrongs, and I must say that what you've posted makes impeccable sense. Please continue the good work - the more individuals know the better they'll be armed to cope with the tax man, and that's what it's all about.